First use the rectangular selection tool to select a square or a
rectangle.

Then right mouse click on the image and 

select> To Path

Now one at a time click on the corner points and drag out the handles to
adjust the path so that it has rounded edges.

When you have it adjusted perfectly click inside the path to make it a
selection.

I was able to make an image that looked like a TV screen within a few
minutes.  

I've placed it here if you want to take a look:

http://www.obscurasite.com/images/teevee.gif

Now if you want one with rounded _corners_ that may take  a little bit of
tweaking. :-)

Cheers!
--
Jon Winters http://www.obscurasite.com/
OpenVerse  http://www.openverse.org/

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